A PDF copy of this study is available.Introduction
United States taxpayers currently spend $545 billion annually on the federal government’s Medicaid program. This money is meant to aid the disabled and vulnerable and to support low-income families. However, millions of these dollars are being redirected before they ever reach the people they are meant to support.
About $41.5 billion of Medicaid funds are sent to states through the Home and Community-Based Services “waiver” program.This waiver allows those eligible for Medicaid — individuals suffering from a disability, illness or other affliction — to use these funds to pay for in-home care, as opposed to enrolling in an institution. These in-home services are often provided by family members or friends, or other local, independent providers. Medicaid payments are sent directly to these providers on behalf of their Medicaid-eligible “client.”… more

Click here to view the PDF of the full study.Introduction
Since 2008 the Mackinac Center for Public Policy — and more recently in conjunction with the Washington, D.C.-based Tax Foundation — has worked to estimate the degree to which cigarettes are smuggled into and out of American states. Our research, and that of other scholars too, suggests that smuggling is a rampant problem, particularly in states with high cigarette excise taxes.
Unintended and unforeseen consequences are a frequent problem in public policy. Few politicians realize when they vote for higher excise taxes that doing so may dramatically increase cigarette-related crime, such as smuggling. These crimes not only deprive local and state governments of tax revenues, they also tend to descend into violence, which produces all sorts of unnecessary damage. Policymakers should take these realities into consideration when contemplating how much to tax cigarettes.
This report analyzes the relationship between cigarette tax rates and cigarette smuggling rates. It relies on the same statistical model used in our previous studies, but uses the latest available data from 2014. New York State once again claims the highest smuggling rate in the nation. In fact, according to our analysis, New Yorkers consume more smuggled cigarettes than they do legally taxed ones. New York state has the highest excise tax rate on cigarettes in the country at $4.35 per pack and New York City adds another $1.50 tax. Arizona, Washington state, New Mexico and Minnesota round out the top five states for percentage of in-bound smuggling. Michigan ranks 12th, down two positions. … more

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This is the 14th edition of the Mackinac Center's annual school privatization survey. We ask every school district in the state if they outsource one of the three main noninstructional services — custodial, transportation and food services. The results from this year's survey show that 70 percent of school districts contract out for at least one of these services. … more

This brief examines the series of events that led to the Highland Park school district being converted to a system of charter public schools in 2012. Used as a strategy to help the district eliminate its large fiscal debt while still providing resident students with a local public school option, Highland Park's charter conversion is one of the first of its kind in the state and even the nation.
During the first year of charter school operation, students demonstrated significant learning gains, with some grades posting academic growth far above the average Michigan student. … more

This policy brief reviews the growth of Michigan’s state and local government expenditures from 2000 to 2010 and finds that government employee contributions, particularly the cost of employment benefits, were a primary contributor to the increase in spending. This brief explores the kinds of employment benefits that can be received by employees, as well as the recent changes made to benefits in the government and private sectors. It finds that bringing benefits in line with private-sector averages would save Michigan $5.8 billion and provides recommendations for implementing this policy. … more

The state of Michigan manages two major statewide defined-benefit pension plans.* The largest plan provides benefits for public school employees through the Michigan Public School Employees’ Retirement System, known as “MPSERS.” The second defined-benefit plan is provided through the Michigan State Employees’ Retirement System, which covers employees of state government and is known as “MSERS.” The MSERS defined-benefit plan was closed to state employees hired after March 1997; these employees were enrolled in MSERS’ new defined-contribution plan.*
This paper reviews MPSERS and MSERS pension and retiree medical benefits and confirms many of the published concerns* related to the level of benefits provided and the associated fiscal challenges facing Michigan taxpayers in both the short and long term.
*Citations provided in the study’s main text. … more

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